The current economic and financial situation is changing investment habits. Persistently low interest rates, the resulting quest for yield and control of risks are the main concerns for investors seeking to invest in equities. Against this backdrop, BLI – Banque de Luxembourg Investments will launch the BL-European Family Businesses fund, a new equities fund that invests in around 60 listed European family businesses, rigorously selected according to strict criteria: a clear competitive advantage, strong profitability, a value-creating business strategy and attractive valuation.
“One distinguishing characteristic of family businesses is that they are not driven by short-term financial objectives. Because of the family’s commitment to the next generation, the company naturally develops a long-term strategy with an underlying desire for continuity and resilience over time. Of course, growth and performance are also important, but these goals are balanced by socio-economic values that can strengthen the organisation and its position in the market,” says fund manager Ivan Bouillot, who is also fund manager for the BL-Equities Europe fund since 2004.
“Family business leaders are also able to steer the company’s strategy and shape the corporate culture through the values they advocate, their passion for their profession and their social commitment. It was during meetings with family business owners that we began to appreciate the added value of businesses managed by families, and the idea of developing this family business fund project grew from there.”
The BL-European Family Businesses fund invests in European equities, regardless of market capitalisation. They define a company as a family business if at least 25% of its equity is owned by the person or family that founded the company or acquired the company’s capital, if the family has an active role in the company as a manager or a board member, and if there is a desire to preserve the company as part of the family’s wealth.
“With this new fund, we continue to apply our proven investment strategy, which involves selecting quality companies and taking an interest in their long-term development”, explains Head of Sales, Lutz Overlack. “Our strategy focuses mainly on manufacturers of personal and household goods, food and beverages and companies in the industrial, healthcare, chemistry and technology sectors.” Banking and insurance, capital-intensive industries, commodities and telecommunication companies are excluded from all the funds in the BL funds range.
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